Health insurer Cigna signs 10-year deal with Canada's Catamaran

June 10 (Reuters) - Health insurer Cigna Corp signed
a 10-year agreement with pharmacy benefit manager Catamaran Corp
and said it expected to record a related
charge of about $25 million in the current quarter.

The Canadian company had a contract with Medicare provider
HealthSpring, which was acquired by Cigna. The contract brought
in about a third of Catamaran's 2012 revenue of $9.94 billion.

Catamaran, which competes with Express Scripts Holding Co
and CVS Caremark Corp, administers health plans
and drug benefits for employers and run mail-order pharmacies.
Pharmacy benefit managers help cut costs of medication by
encouraging more use of generic drugs.

Cigna expects the agreement to begin making a positive
contribution to earnings in 2014 and to add about 50 cents to
earnings per share in 2015.

BofA Merrill Lynch acted as sole financial advisor to Cigna
on the agreement.

Catamaran's Toronto Stock Exchange-listed shares closed down
3 percent at C$49.60 on Monday. Cigna shares closed at $69.00 on
the New York Stock Exchange.